Global Solar Investment Reaches Record $521 Billion in 2024, Led by China

Growth

Global solar investment soared to a record $521 billion in 2024, accounting for 25% of the $2.1 trillion invested in the energy transition and an overwhelming 72% of total renewable energy investment, according to BloombergNEF. Despite declining per-unit installation costs, 599 gigawatts (GW) of solar capacity were installed globally, marking an unprecedented expansion.

The chart from BloombergNEF visually highlights the steady rise of solar investment over the past two decades, culminating in a sharp surge from 2020 to 2024. Notably, China has dominated this growth, with its share of investment (depicted in red) significantly outweighing contributions from other regions. The United States, Europe, and the rest of Asia-Pacific also made substantial investments, but none at the scale seen in China.

China’s Unrivaled Leadership in Solar Expansion

As shown in the chart, China’s investment in solar energy has grown, particularly in the last five years. The country’s aggressive expansion was driven by large-scale projects, including an 8.5 GW solar farm in the Taklamakan Desert, spearheaded by China Three Gorges (pic below).

China’s dominance in the global solar market is also reflected in the regional distribution of investments. Compared to previous years, 2024 saw China contributing the largest portion of total global solar investment, surpassing every other region combined.

Key Global Trends in Solar Investment

1. Small-Scale Solar Expansion According to the chart, solar investment has risen across multiple regions, but a major shift in 2024 was the expansion of small-scale photovoltaics, which accounted for more than half of total solar investment. Notably, Pakistan alone installed 12.5 GW of unsubsidized rooftop solar, reflecting a growing trend toward decentralized energy generation.
2. Middle East and Emerging Markets Gaining Momentum The $3.2 billion loan for Saudi Arabia’s solar projects, led by ACWA Power, represents a major development in the Rest of Europe, Middle East, and Africa segment (represented in yellow on the chart). This growth suggests that countries in the region are increasingly prioritizing renewable energy investments.
3. US and Brazil See Slower Investment Growth Despite achieving record solar capacity additions, the US (blue) and Brazil experienced a decline in investment due to falling solar module costs. The decreasing cost per installed unit meant that even though more solar capacity was added, the total capital expenditure was lower.
4. European Union Faces Slower Adoption A notable trend in the chart is the stagnation of solar investment in the EU-27 (green segment) compared to other regions. Lower consumer electricity prices have made residential solar less attractive, leading to reduced adoption in Germany, France, and other major European markets.

Looking Ahead: 2025 Solar Expansion Expected

The chart suggests that the global solar market is on an upward trajectory, with no signs of slowing down. BloombergNEF projects that global photovoltaic capacity will expand by another 17% in 2025, reaching 698 GW. However, as solar module prices hit historic lows, investment growth may not match the rapid increase in installed capacity.

With China leading the charge, and emerging markets following closely behind, solar energy is firmly cementing itself as the world’s primary renewable energy source. As the investment figures show, the transition to a clean energy future is accelerating, with solar at its core.

Below the outlook for China